B-236135, Aug 17, 1989, 89-2 CPD ***, Office of General Counsel

B-236135: Aug 17, 1989

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This is FAR case No. 89-53. To provide that 8(a) contracts must be awarded on the basis of competition among eligible 8(a) program participants if (1) there is a reasonable expectation that at least two eligible firms will submit offers and that award can be made at a fair market price. The addition of two contract clauses in Part 52 (FAR sections 52.219-17 and -18) to implement the provisions of the Act. have no objection to the proposed changes.

B-236135, Aug 17, 1989, 89-2 CPD ***, Office of General Counsel

PROCUREMENT - Socio-Economic Policies - Small business 8(a) subcontracting - Federal procurement regulations/laws - Revision DIGEST: General Accounting Office has no objection to Federal Acquisition Regulation (FAR) case No. 89-53, a proposal to revise FAR Parts 5 and 6, amend FAR Subpart 19.8, and add new contract clauses at FAR sections 52.219-17 and 52.219-18 to implement section 303(b) of the Business Opportunity Development Reform Act of 1988, Pub.L. No. 100-656, concerning competition requirements for procurements under section 8(a) of the Small Business Act, and section 303(d) of the Act concerning protests by the Small Business Administration of decisions made by contracting agencies in connection with the 8(a) program.

Margaret A. Willis

FAR Secretariat

General Services Administration:

This responds to your letter of June 30, 1989, requesting our comments on a proposal to amend the Federal Acquisition Regulation (FAR) to implement subsections 303(b) and 303(d) of the Business Opportunity Development Reform Act of 1988, (the "Act"), Pub.L. No. 100 656. This is FAR case No. 89-53.

Section 303(b) of the Act amended section 8(a)(1) of the Small Business Act, 15 U.S.C. Sec. 637(a)(1) (1982), to provide that 8(a) contracts must be awarded on the basis of competition among eligible 8(a) program participants if (1) there is a reasonable expectation that at least two eligible firms will submit offers and that award can be made at a fair market price, and (2) the anticipated award price exceeds specified dollar amounts. Section 303(d) of the Act amends section 8(a) of the Small Business Act to provide that the Small Business Administration (SBA) may file an appeal with the head of a contracting agency contesting a procurement officer's adverse decision, which may include either the failure to offer a particular procurement for award under the 8(a) program or the failure to agree with the SBA on the terms and conditions of an 8(a) contract.

Also, under section 303(e) of the Act, a small business concern may ask the SBA to protest the contracting agency's estimate of the fair market price in a particular procurement.

FAR case 89-53 proposes changes to FAR Parts 5 and 6, a revision of Subpart 19.8, and the addition of two contract clauses in Part 52 (FAR sections 52.219-17 and -18) to implement the provisions of the Act. have no objection to the proposed changes.